Young Aussies the biggest target in online financial scams, according to Bankwest

Young people are increasingly falling victim to financial scams, according to data released by a major bank. There was a 49 per cent increase in losses from phising scams for 18 to 24-year-olds in the 2024-25 financial year compared to the prior 12 months, according to data released by Bankwest. Head of customer trust and security Philippa Costanzo said phishing scams represented 77 per cent of all losses for the young cohort and 54 per cent of all cases reported to the bank “Despite a 57 per cent reduction in customer scam losses for Bankwest, there has been a noted rise in the share of scam exposure among those under 45,” she said. “Scammers continue to target and exploit vulnerabilities among all Australians. “Phishing scams are the most common scam type among younger demographics, reaching 77 per cent of total losses for those aged 18–24. “Ignore and delete suspicious calls, texts, or links and contact organisations using official numbers.” While greater security measures have helped reduce the risk, relationship scams — victims of which are most commonly aged 45-64 — increased 110 per cent rise in the same period. A relationship scam often sees victims groomed over time in order to build a false sense of trust with a scammer, before funds are sent under under the guise of family problems, travel expenses or health issues. Bankwest customer Julie Martin had to replace two credit cards over the past year after her family was targeted by scammers on separate occasions. The first occurred in September when her husband tried to by a vanity for their bathroom renovation. “Our bank told us they’d cancelled our credit card (as a safety measures) because the website was trying to take $1300 from us four times,” she said. “The money was never taken, but we were just surprised.” Months later she received a phone call from Bankwest alerting her to a US based merchant trying to take “$0” from her account. A bank fraud detection analyst believed the attempted transaction was linked to scam activity, before Ms Martin confirmed it wasn’t initiated by her. “It’s a bit scary, because now I realise, it might happen more,” she said. Ms Costanzo said it was critical the community works to “eliminate the stigma of embarrassment” in order to fight back against scammers. “The criminal perpetrators of scams are professionals at what they do and use increasingly sophisticated tactics to prey on our most fundamental human needs,” she said. “In addition to the financial toll, the psychological impact is profound. Victims often experience shame, anxiety, and a loss of trust, which can delay reporting and recovery efforts.” Ms Costanzo said some of the greatest losses were linked to investment scams — which accounted for 14 per cent of all scams recorded over the period. Investment scams represented 47 per cent of all scams for people aged 55-64. “Investment scams are often triggered by cold calls from fake managers or social media ads promising quick profits and urgent, high-return opportunities,” she said. “We urge customers never to send money or share personal details with anyone who contacts them unexpectedly, and to be wary of investment offers on social media or outside official financial channels, as these can be risky.” Bankwest has introduced technology such as virtual cards — which give customer the opportunity to generate unique and temporary card details — in a bid to reduce scam risks. The bank has sent out 42,000 digital alerts to customers after new “check-it” notifications were integrated into the Bankwest app in November. Ms Costanzo urged people to never share their two-factor authentication or SMS codes and to stay vigilant to questionable communication.